TMBAM asset portfolio increases 40% in 2007

MUTUAL FUNDS OUTLOOK

TMBAM asset portfolio increases 40% in 2007

NUNTAWUN POLKUAMDEE

TMB Asset Management saw its asset portfolio grow by nearly 40% in 2007, as rising interest rate trends helped draw investors to the firm's short-term fixed-income funds. Jotika Savanananda, TMBAM's managing director, said the company had 137 billion baht in assets under management at the end of 2007, up 37% from the year before.

Assets under management expanded well above the company's growth target of 20% for the year, she said.

Net inflows were mostly in the firm's 24 short-term money market and fixed-income funds with durations of three- and six-months. The company's main fixed-income fund also posted strong growth to 41.5 billion baht at the end of 2007 from 24 billion the year before.

TMBAM's equity funds were mostly stagnant due to weak investor confidence about economic and political trends.

Ms Jotika said TMBAM planned to launch two new funds this year based on a foreign securities index or an equity-based country index fund.

The company last year launched three foreign investment funds: a world equity index fund, an emerging markets equity index fund and a China equity index fund.

Ms Jotika said TMBAM's retirement mutual funds and long-term equity funds also posted modest growth of 900 million baht in 2007, with total assets under management of 6.5 billion.

''I think this year will remain a golden year for fixed-income funds. Investors have better understanding about investment now, and our fixed-income funds have AAA ratings and posted growth of 70% last year,'' she said.